Guan Chong sees record profit this year


  • Corporate News
  • Tuesday, 19 Nov 2019

PETALING JAYA: Strong demand for cocoa is driving profits at grinder GUAN CHONG BHD to new highs.

Net profit growth in the third quarter ended Sept 30 jumped 38% to RM60.5mil compared with RM43.9mil previously.

This lifted its cumulative nine-month earnings to RM174.7mil.

“At the current rate, we are likely set for a bumper year with a record profit performance for the financial year ending Dec 31, 2019,” managing director and chief executive officer Brandon Tay Hoe Lian said in a statement.

Guan Chong, the world’s fourth-largest cocoa grinder, said its strong performance in the third quarter was driven by rising sales volume, as a result of strong global demand for chocolate products.

Revenue rose 24.4% to RM744.61mil from a year ago on the back of a 24.1% increase in the sales volume of cocoa ingredients.

The growth was supported by the 25% expansion in its annual grinding capacity to 250,000 tonnes as at end-March 2019.

As of the third quarter, the company had achieved a near-full capacity utilisation of 98%.

Tay said the group is targeting significant growth in the next five years to strengthen its position as a global cocoa ingredients supplier, as it increased its production capacity and pursue more exports to existing and new markets.

“This comes as demand for chocolate remains on an uptrend due to rising consumption in major markets like Europe and the United States, and sanguine Asian demand on rising affluence and appetite for cocoa products.”

The company has declared a third interim dividend of one sen per share, which will be paid on Jan 3, 2020.


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3

Guan Chong Bhd

   

Across The Star Online